Tag Archive for: cash is king

How Much Are Credit Card Processing Fees Costing You?

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Have you noticed signs on the counters of local restaurants offering a discounted price for cash payments? On the counters of local retail shops? What about at the pump? And maybe you’ve seen the opposite: notices that credit transactions will incur an extra fee. Maybe in the drive-thru windows of your favorite fast food joints? Why is this?

Merchants are charged credit card processing fees every time someone swipes their card. Basically, it costs money for the credit card processing company to communicate with the network and complete the transaction. To help cut costs, many companies are attempting to minimize these charges by encouraging more cash transactions. Or, they just pass the cost onto the customers.

So, cash is not becoming obsolete as some might have previously thought. This is good news for the ATM industry. It’s good news for you, too, if you are in or looking to enter the ATM machine business. 

But if you are a store owner, how much are credit card processing fees costing you? How much are they costing you as a consumer? Keep reading to learn more about credit card processing fees and how to avoid them.

What Are Credit Card Processing Fees and How Do They Work?

Credit card processing fees are the costs businesses pay to accept credit card payments. These fees cover the services of processing transactions, ensuring security, and transferring funds from the customer’s account to the merchant’s account.

When a customer makes a purchase using a credit card, the payment information is sent through a payment processor to verify the transaction. The card network (Visa, Mastercard, etc.) and the issuing bank approve or decline the transaction based on available funds and fraud checks. Once approved, the funds are transferred from the customer’s bank to the merchant’s account, minus processing fees.

Merchants are typically responsible for paying credit card processing fees. But while they absorb the initial cost, many try to recoup the expense by passing some or all of it onto the customer. 

How Much Are Credit Card Processing Fees Costing You?

Businesses

Credit card processing fees are generally 1.5% to 3.5% of the transaction ($1.50-$3.50 for a $100 sale). There are a number of factors that determine the cost including payment processor, card type, and transaction type.

Payment Processor

There are many different payment processors businesses can use to accept digital payments. Each processing company, such as PayPal, Stripe, Square, etc. sets its own rates and fee structures.

Card Type

Credit card companies like Visa, Mastercard, American Express, Discover, etc. are independent companies responsible for setting their own credit card processing fee amounts. Amex, for example, is notorious for charging slightly more than the other three major card brands.

Transaction Type

Furthermore, fees vary according to transaction type: card-present (in-person) or card-not-present (online, phone, or manually entered). This is due to differences in security, fraud risk, and processing costs.

For example, swipe, chip, and tapped transactions will be charged a lower credit card processing fee because they are more secure—the card is present. EMV chip technology and PIN verification also reduce fraud, minimizing the risk.

Online, phone, or manually entered transactions will experience higher credit card processing fees due to higher fraud and chargeback potential (disputes where the customer claims fraud or purchase errors). The higher cost also helps cover extra security measures like CVV verification and fraud detection tools.

For these same reasons, debit card transactions will experience lower credit card processing fees than credit card transactions. They are lower risk and cost less to process. 

First of all, debit transactions are lower risk for banks. There is no borrowing involved. Debit transactions pull funds directly from the customer’s bank account, so there’s no risk of non-payment or defaults like there is with credit cards. And since debit purchases use the customer’s actual funds, chargebacks are less common compared to credit cards.

And debit transactions cost less to process. Because they often use a PIN-based network, they are more direct and secure which reduces fraud risks and the need for extensive fraud prevention measures. Plus, when a debit card is used, the money moves directly from the customer’s bank to the merchant’s bank, eliminating the need for a credit extension or underwriting, which adds costs to credit card transactions.

You can use this calculator provided by NerdWallet to calculate your monthly credit card processing fee cost estimate.

Consumers

Now, while there are charts and calculators to help businesses estimate how much they’ll pay in credit card processing fees each month, it isn’t so easy for consumers. The biggest reason is because there are less transparent ways that businesses can pass the cost onto the consumer such as increasing product and service prices or reducing discounts. 

However, according to the National Association of Convenience Stores (NACS), swipe fees cost the average family $700 a year. Paying with cash can minimize or eliminate this extra cost.

How Can You Avoid Credit Card Processing Fees?

Businesses

If you feel like you are spending too much money on credit card processing fees, you can strategically choose a processor with lower markups or negotiate rates with a current processor. Sidestep avoidable fees by looking for a processor that doesn’t charge statement fees, minimum monthly processing fees, etc. And try to keep your chargeback rate to a minimum to reduce your perceived risk. High rates of chargebacks can cause providers to increase your transaction fees.

But obviously, the less credit card transactions you process, the less credit card processing fees eat into your revenue. Debit card transactions charge lower fees than credit card transactions. But you can’t really control the card type a customer uses where cards are accepted. So offer discounts for cash payments to promote cash over credit transactions.

You can also pass fees on to customers. However, there are some states (like Connecticut and Massachusetts) that have laws against credit card surcharges. In these states, it is unlawful for a retailer to add a fee to a credit card purchase to cover the processing fee. But every state allows for cash discounts. Cash discounts are protected by U.S. Code, so retailers can encourage customers to use cash over card.

Consumers

It goes without saying that if you don’t pay with a card, you, in many instances, pay less. It is not uncommon to see a discount for paying with cash or an extra charge for paying with a card. 

For example, according to a 2022 study conducted by NACS, 29% of participating convenience stores said they were offering consumers discounts for paying in cash. Convenience stores have noticed the impact the overall rising costs of goods and services have had on consumer buying behavior. “While sales and traffic have slowed as gas prices climbed, retailers continue to seek out innovative ways to provide value at the pump and inside the store to help their customers extend their paychecks and weather this period of inflated costs,” said Jeff Lenard, NACS vice president of strategic industry initiatives. 

Add to that the fierce gas price competition, and it’s no wonder we’ve started seeing two different prices at the pump: one for cash and one for card. KVUE reported that “NACS has repeatedly surveyed customers about their price sensitivity at the pump and has found that nearly half of all consumers would change their behavior to save 5 cents per gallon.”

According to convenience retailers surveyed by NACS, credit card processing fees average more than 10 cents per gallon. Therefore, not all businesses are passing the entire cost of credit card processing fees onto the customer but might, in some cases, simply be sharing it.

ATMs Can Help!

Want to encourage more cash transactions in your store? Want to transition to cash only? Both are possible by installing an ATM in your store or business. We make it easy to get started. 

You can purchase a machine for your location and earn the surcharge fee on withdrawals on top of avoiding credit card processing fees. Or, we can match you with a professional who will place and operate an ATM in your location hassle-free—for free! If you’re ready to save money on credit card processing fees, click here to get started today.

Are Credit Card Interest Rates Keeping You in Debt?

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“[Banks] own your butt, and you gave them the deed! Don’t give them the deed to your butt! They own you!” –Dave Ramsey

Credit card interest rates continue to rise, yet consumers are still spending. Why? Well there are a number of factors that contribute to Americans’ trillion dollars of credit card debt. Lower income households are struggling to stay afloat, especially after the Covid-19 pandemic. Many people continue to live and spend outside of their means. Credit card interest rates are at an all-time high. And credit card companies profit from keeping you in debt. 

This article will explore the tactics used by credit card companies to increase their profits and keep you in debt. We’ll also share ways to avoid credit card interest rates to get and stay out of credit card debt. 

As Dave Ramsey says, “You can make it without these things. Get you a debit card. Pay cash for it.” Here’s how:

How Bad Are Credit Card Interest Rates?

Basically, credit card interest rates determine how much extra you’ll pay if you carry a balance on your card from month to month. And, according to Bankrate, that’s the case for about 1 in 2 credit card holders. 

The Federal Reserve’s string of interest rate hikes lifted the average credit card rate to an all-time high of more than 20%. Credit card fees increased despite Joe Biden’s move to cap credit card late fees in March 2024. The financial industry responded by filing multiple lawsuits against the administration. 

Increasing credit card interest rates, in addition to steadily high inflation and the cumulative increase in prices over the last three years, leaves many households in a bind, says Greg McBride, chief financial analyst at Bankrate.com.

Credit cards have become one of the most expensive ways to borrow money. So why do people still use them? Well, aside from struggling to afford emergency and unplanned expenses, credit card companies intentionally mislead and manipulate borrowers. More on that next.

Why Americans Continue to Use Credit Cards

People continue to use credit cards. They offer convenience, financial flexibility, and various benefits that other payment methods often lack.

Credit cards are easy to use for both in-person and online purchases. They reduce the need to carry large amounts of cash. And automatic billing for subscriptions and recurring expenses simplifies payments.

There are also often a number of perks associated with using a credit card. Many credit cards offer cashback, travel points, or rewards for specific spending categories. Some provide perks like airport lounge access, travel insurance, or extended warranties. 

But Bankrate reported that the most common reasons for credit card debt include emergency and day-to-day expenses. Among respondents surveyed who carry a balance on their credit card(s), 47% say the primary cause was an emergency/unexpected expense(s): 15% named emergency/unexpected medical bills; 9% emergency/unexpected car repairs; 7% emergency/unexpected home repairs; and 16% other emergency/unexpected expenses. Twenty-eight percent cited day-to-day expenses such as groceries, childcare, and utilities as the primary cause.

Yes, credit card use can help build a positive credit history. Credit history is often crucial for securing loans, mortgages, and even some jobs. And paying on time and keeping balances low can improve your credit score. But this is only the case if credit cards are used responsibly and borrowers can avoid or minimize credit card interest rates. And, unfortunately, credit card companies actively work to prevent this. 

Why Credit Card Companies Want to Keep You in Debt

The bottom line is that credit card companies make money from credit card interest rates and other “junk fees”. Junk fees are extra charges that businesses add to the cost of a product or service. They often come with little explanation or transparency. These fees might include service fees, convenience fees, processing fees, late fees, etc. 

So the more products you purchase, the more credit card debt you accrue, and the harder it becomes for you to pay it off or get on top of it, the more money credit card companies make. 

Elena Botella, before resigning from her position with Capital One, questioned how raising credit card interest rates “radically” improves people’s lives. And this, she says, was one of the company’s “pie in the sky” goals. At the end of the day, it was just another way for the company to make more revenue. 

According to Bilal Beydoun, Director of Policy and Research for Groundwork Collaborative, credit card companies profit from predatory pricing. He defines this as “algorithmic-driven pricing,” or what you might have heard called “dynamic pricing”. Many companies were able to exploit the economic emergency created by the pandemic by raising their prices, contributing to inflation. So when you purchase a product at an inflated price and carry a balance at, say, 35% APR, you become a victim of what Beydoun refers to as “corporate profiteering.” The already inflated purchases you are charging follow you the rest of the year and cost you more and more every month.

Isn’t Credit Card Debt a Choice?

Most people believe that people who take out loans or open credit cards make that choice and should therefore be responsible for it. But Botella argues that most people wouldn’t make that choice if they had all of the information that credit card companies have. After leaving Capital One, Botella travelled the country looking for stories about the experiences of people living with debt and how they had been affected by the choices credit card companies like Capital One were making.

At one point in her career with Capital One, Botella was on a team where she was tasked with conducting experiments to see how much money the company could extract from people. “The bank is doing those experiments to measure, like, how much debt can I get somebody in, up until the point that they’re going to be in so much debt that they default because of that extra debt burden?” she explains. 

Botella believes that credit card companies are taking advantage of the fact that most people don’t understand the whole picture. “The two parties are operating with just completely different sets of information,” Botella says. “So they have a specific estimate: this person is going to get into $13,000 of debt. And over the next five years, they’re going to pay $8,000 worth of interest, whatever the case may be. They know that and you don’t and would you make the same decision if they just told you that?”

And raising credit card interest rates isn’t the only strategy credit card companies use to keep consumers in debt. Remember those perks we listed earlier? Just how much are you rewarded for the thousands of dollars the credit card company makes off of you? 

Understanding Credit Card Company Tactics

Capital One in particular has been penalized for practices like targeting people with low credit scores, tricking them into buying add-on services like credit and payment monitoring they didn’t actually need, and leading them to mistakenly believe that those things would improve their credit. But you have to understand that credit card companies are for-profit businesses. They will aim to increase their profits every year.  

“No one should be surprised that credit card debt hit another record high,” says Matt Schulz, chief credit analyst at LendingTree. And “there’s very little reason to believe that we won’t continue to see new credit card debt records being set going forward.”

Junk Fees

Rohit Chopra, former Commissioner of the United States Federal Trade Commission, has made big strides as Director of the Consumer Financial Protection Bureau (CFPB). He’s been particularly concerned with regulating excessive fees levied on people by credit card companies and banks. “We put out a rule…regarding credit card junk fees. And so what we found was that there was a loophole that the credit card companies had been abusing for years and years and years to extract an extra $27 million a day, $10 billion a year,” Chopra says.

Credit card junk fees might include anything like annual fees, balance transfer fees, late payment fees, foreign transaction fees, etc. Although, a staggering majority of credit card company profits comes from credit card interest rates ($105 billion out of $130 billion in 2022) rather than from junk fees.

Devaluation of Points

And those points and travel perks credit card holders are so quick to tout? Chopra has plans to reform how credit card points are used, too. “Well, we were actually pretty worried about these credit card companies engaging in massive devaluation of points. They want to say you’re going to be able to use this for free round trips, and then you try and use it and it’s almost worthless. That is not right. So we are actually trying to make sure that the promises are being kept,” he says.

Unethical Practices

Credit card companies have been caught opening up authorized accounts and making serious billing errors that they failed to correct until people reached out. And, believe it or not, Citibank is one example of application discrimination. They analyzed applicants’ last names under the impression that anyone with an Armenian-sounding name would somehow be a poor applicant. “So you simply cannot leave these credit card companies to their own devices,” says Beydoun, “because that almost certainly will lead to some of these practices that we just went through.”

So what can be done?

Why Paying in Cash Avoids Credit Card Debt

To combat credit card interest rates, it’s important to make sure you stay educated about how credit cards work. Read the fine print, ask questions, remain vigilant, and do your research. And of course, avoid credit cards altogether if possible. It’s easier said than done, but remember that the higher your balance, and especially the higher the balance you carry from month to month, the more debt you accumulate in credit card interest rates.

Paying with cash or debit can minimize credit card debt by promoting more intentional spending and reducing reliance on credit.

First, it minimizes impulse spending. When you use cash, you physically see the money leaving your wallet, which can make you more mindful of your purchases. This often leads to better budgeting and less overspending.

Credit cards can create a “buy now, pay later” mentality, encouraging spending beyond your means. Using cash sets a clear limit — once it’s gone, you can’t spend more without actively seeking additional funds. This helps limit overspending.

By using cash for everyday expenses, you reduce the need to put small purchases on your credit card. This helps you focus on paying down existing credit card balances without adding to them, thereby avoiding credit card interest rates.

Paying with cash often requires planning, which naturally leads to better money management. Many people set spending limits by withdrawing a set amount of cash for the week or month. Sticking to a planned budget can help minimize the “need” for credit card spending.

By relying less on credit cards for daily expenses, you can allocate more money toward paying down your existing debt and prevent further debt accumulation. Using cash for non-essential purchases or setting a cash-only rule for categories like dining out, entertainment, or groceries can significantly reduce the risk of accumulating debt.

What Credit Card Interest Rates Mean for ATM Business Owners

We’ve said it before, and we’ll say it again: cash is still relevant. As banks, credit card companies, and other financial institutions get dangerously large, or, “too big to fail”, more people than ever are encouraged to keep cash on hand as a safeguard against financial uncertainty. 

Cash continues to present certain benefits like privacy, budgeting power, and emergency preparedness. Most importantly, it could be the best defense against credit card interest rates and suffocating credit card debt. Don’t let credit card companies own you!

Ready to get into the ATM game? Whether you’ve been skeptical about the relevance of ATM machines amid electronic payment options or want to make some extra money to help tamp down your own accumulated debt, get your free ATM start-up kit today!

Is an ATM Business Still a Profitable Business in 2025?

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If you want to start a profitable business in 2025, you might want to consider looking into an ATM business. But how do you define “profitable” and how much profit do you want to make? An ATM business won’t get you rich, but it is a safe investment that can generate revenue immediately and turn a profit quickly. 

With the increase in digital forms of payment, you might be concerned that cash will soon become obsolete and therefore ATM machines. Although Americans are using cash less, we are still very far from getting rid of it altogether. 

So yes. An ATM business is still a profitable business in 2025. Here, we’ll tell you what that looks like. 

What Does It Mean to Be a Profitable Business?

A profitable business makes more than it spends. The money that a business generates is its revenue. What’s left over after startup and operational costs are covered is profit. 

There is typically a relatively high degree of risk when starting a business because of the high startup and operational costs. The business has to see enough customers, retain enough clients, make enough sales, etc. to justify those costs. Otherwise, the business costs more to operate than it makes, it doesn’t generate profit, and it fails.

Because of its low startup and operational costs, an ATM business is a lot less risky. It’s actually very difficult to lose money with an ATM machine.  

How Is an ATM Business a Profitable Business?

How an ATM Business Generates Revenue

An ATM business generates most of its revenue from the surcharge fee imposed on transactions made on the machine. Most of the ATM machines you see on a daily basis charge about $3.00 per cash withdrawal. 

The most basic way to calculate your profit is to multiply your surcharge fee by the number of transactions you expect to see in a day. For example, $3.00 times 5 customers equals $15. Multiply that by the number of days your machine is available to the public to estimate weekly, monthly, and even yearly totals.

Now, if you consider that an ATM machine plus the vault cash is around $3,000-$4,000, you’ll have that paid off plus more in the first year with the above numbers. So yes, an ATM business is a profitable business. It is very easy to make your return on investment (ROI) very quickly and therefore begin to profit.

Other Ways to Profit from an ATM Business

While you won’t get rich with an ATM business, there are other benefits an ATM business offers over other businesses. First, an ATM machine generates income while you sleep (or just do other things). 

When you think of the time and energy involved with running an average business, you might find that the profit doesn’t compensate you enough for the non-monetary resources you invest. An ATM business, on the other hand, doesn’t require your physical presence all of the time. 

This allows you to spend your time doing other things, whether it’s enjoying your free time, working another gig, traveling, or spending time with friends and family. These can be considered profits, too, which many other businesses don’t offer.

Second, there are many headaches you don’t have to handle with an ATM business. You don’t have to manage employees, rent an office or lease or purchase property, or even wake up early! You can monitor and manage your ATM business all by yourself if you want to, with an app on your phone, from the comfort of your home.

And, you can scale if you want to. Want to see more profit than you’re getting from one machine? Place another! With 10-12 machines, you could make the ATM business your full-time job, physically spending only part-time hours away from home. Say goodbye to job interviews, job security stress, bosses, coworkers, dress codes, and the rest!

Better Investment Than a Savings Account

Like we said before, it’s hard to lose money with an ATM business. You probably already have $3,000-$4,000 in a savings account at the bank. As of January 2024, the national average yield for savings accounts is 0.58 percent APY. 

That money, sitting there doing nothing will earn maybe $20 in a year in interest. Do you think you could get at least 7 ATM transactions in a year? We think you can! Investing in an ATM business will yield you more than the money you have sitting in your savings account at the bank right now.

Will Cash Soon Become Obsolete?

This might all sound great, but how long will it last? Take it from us: cash will not become obsolete in our lifetime. There are still way too many industries, businesses, and individuals that depend on it. Just because we are seeing less cash payments does not mean cash is irrelevant. It just means there are more payment options today for consumers. 

It makes sense that there are less cash payments today than there were in the ’50s and ’60s when credit and debit cards just hit the market. Today, in addition to cash and plastic, money transfer apps and an entirely new form of currency—cryptocurrency—have been added to the arena. But that doesn’t mean that we don’t still need cash.

There are a number of situations where cash is better than card. There are still several types of businesses that operate on a cash-only basis. And, good news for the ATM industry, there are even more businesses that would prefer to switch to cash only if it meant they wouldn’t lose customers.

According to the Pew Research Center, over half of Americans try to keep at least some cash on them at all times. And cash is still the most common form of payment for unbanked and low-income individuals.

In short, although cash is used less today than ever before, it is still relevant. And as long as there is a need for cash in our society, there will be a need for ATMs. Which means that an ATM business is still a profitable business in 2025!

Reasons Why an ATM Business is Still a Profitable Business in 2025 

An ATM business is still a profitable business in 2025 because people still need cash. Where there is a market, there is an opportunity. All you have to do is find a gap in that market, offer a needed service, and reap the rewards. 

It only takes a few thousand dollars to get started, significantly less than other businesses. And your ATM makes you passive income—you can be making money while you sleep! If you already have the money sitting idly in a savings account, you might as well put it to work for you!

Will an ATM business buy you a Lamborghini? No. But it could help you fund a vacation, spend more time with friends and family, or replace your 9-5 if you want it to. 

If you’re ready to get started in the ATM industry, get your ATM start-up kit today! If you still have more questions about how to own and operate your own ATM machine, check out ATMDepot Academy, your ATM business road map to generating a steady flow of passive income. 

ATM Placement: Top 13 Cash-Only Businesses

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Cash-only businesses are prime locations for ATM placements. Why? Well because of the demand for cash of course! With the prevalence of debit and credit cards and other digital payment methods like ApplePay and GooglePay and even Bitcoin, it might seem like cash is dying out. We’re here to tell you that it’s not.

Cash will always have its place in society because it is tangible, it is traditional, and it is immediate. When goods and services are paid for in cash, the transaction is over. Done. There’s no hassle, no technology, no extra fees, no paper trail, no wait time, and no reversals.

So, if you find a business that is cash only, try to get an ATM placement there. Because many people no longer carry cash unless they plan ahead. And when customers visit cash-only businesses and they don’t have any, your ATM machine then gets that business. Want to know where to find cash-only businesses? Keep reading. 

Why Are There Still Cash-Only Businesses?

It might seem shocking (and maybe even a little inconvenient at times) that there are still cash-only businesses in this age of digital payments. However, don’t underestimate the power of the dollar bill. There are many reasons why some businesses in particular benefit from cash-only payments.

First of all, cash payment is immediate. There are no declined payments, invalid PIN issues, card swipe errors, etc. to deal with. There are also no fraud claims or chargebacks to handle (and pay for whether in time, fees, or lost product). 

Second of all, electronic payments require special equipment from the card reader to the network connection. Cash transactions can be processed rain or shine, with or without electricity or internet connection. This simplifies the transaction for many small businesses and minimizes extra equipment costs. It also ensures that transactions are processed smoothly without having to worry about technical issues.

Maybe most importantly, cash payments don’t cost the business anything to process. Every time a business processes a debit or credit card payment, it has to pay a processing fee. This is why you might see some businesses charge extra for debit and credit payments; it’s to help them cover these processing fees. 

So, not only are cash payments simpler for businesses, but they are then able to pass savings onto their customers by minimizing their operational costs. If you haven’t guessed already, small, local, “mom-and-pop” businesses benefit the most from cash-only payments. Many examples of these made our list of top 13 cash-only businesses.

Top 13 Cash-Only Businesses (In No Particular Order)

Food Truck Parks

Food truck parks make the list for a few reasons. They are trendy and popping up everywhere. If you can get an ATM placement in the vicinity of food trucks (where people gather to hang out, have fun, and spend money…), you are sure to see a reward. 

Food truck parks draw large crowds, especially on the weekends. This kind of regular, predictable business can make it easier for you to manage your own ATM business. 

Because each food truck vendor is its own small business, it’s common for some to accept cash only to simplify their business model and keep operational costs to a minimum. However, even if all food trucks aren’t cash-only, access to an ATM is still beneficial as cash can speed up transactions and reduce long lines and wait times. 

Small Local Gift Shops

Two keywords here: “small” and “local”. Again, small businesses benefit the most from cash payments because credit card processing fees cut too deep into their profits. Local shops and businesses are typically inherently small because their target audience is localized and limited. 

Furthermore, gift shop inventory is usually made up of tchotchke-like items. Cash-only payments make more sense for low-ticket sales because customers aren’t as concerned about paying off purchases over time.

Farmers Markets

Farmers markets are outdoor venues. This means that many booths don’t have access to power or strong, reliable internet connection for electronic payment processing. And while there are nifty workarounds like Square, farmers and other market vendors might not be tech savvy enough to bother. Add to this the simple, back-to-basics atmosphere of a farmer’s market, and you’ve got an increased demand for cash.

Laundromats

Not only are most laundromats still cash-only, it’s also a fairly reliable industry. Just like society won’t phase out cash any time soon, we also aren’t likely to phase out laundromats. There is more and more demand for laundromats as the population increases. 

There are also no large laundromat chains. This makes it easier to get an ATM placement since a small, local business isn’t likely to have the resources to partner with a bank for ATM service like a chain would. There are card-operated machines and even reloadable laundromat cards, but these often malfunction and are out of order. You want your ATM to be available when that happens.

Coffee Shops

With coffee shops, you’re again looking for small and local. Chains have the overhead and the reliable customer-base to be able to justify the credit card processing fees. Local coffee shops benefit more from cash-only payments and aren’t expected to offer a wide variety of payment options. 

Customers of small, local coffee shops go there for a simple, personalized experience. They know what to expect. And sometimes, that “cash only” sign even adds to the appeal.

Nail Salons

This is another booming industry. Nail technology is advancing, and “self-care” has become a term eagerly adopted by many and often applied to justify beauty services. 

The salon experience is enhanced by receiving services regularly. It isn’t enough to go once; you have to maintain your look. Therefore, regular salon-goers build relationships with salon employees over time. This increases their desire to pay with cash.

Some salons are cash-only because they are small businesses; nail salon chains are rare. But even if there’s a salon near you that does accept electronic payments, those employees are still encouraging their regulars to pay with cash because of the benefits. It’s an immediate payment, there are no payment processing fees, and it isn’t automatically taxed.

Cash payments are more personal, and when a nail technician gets comfortable with a customer, it becomes easier to request cash payments. That’s why nail salons make good ATM placements.

Barber Shops

Although your local barber shop or beauty parlor is probably not a chain, your payment isn’t always going directly to that shop itself. Many barbers and beauticians pay shops to rent a chair, space, equipment, etc. 

So while we might have you convinced that credit card processing fees hurt small business profits, think of what it can do to a freelancer or independent contractor’s already miniscule income. That processing fee is basically coming out of their paycheck. This is why you will find that many barber shops and beauty parlors are cash only. 

Mom-and-Pop Restaurants

Why are mom-and-pop restaurants often cash-only? You guessed it! They are small businesses that can’t always afford to have thousands of dollars of credit card processing fees cut out of their profit. Servers also rely heavily on tips for their income. Cash tips allow restaurant employees to take money home every night rather than waiting for a paycheck.

Additionally, depending on the age and/or location of the restaurant or business, it might not be set up for electronic payment processing. The technology in the location might be outdated, and businesses in rural areas might have troubles with weak, unreliable internet connection.

Or, the owners just might not have the savvy to handle the technical side of electronic payment processing. There is the traditional aspect to consider as well: “It’s the way we’ve always done it.” Sound familiar?  

Fairs/Carnivals

Fairs and carnivals are great opportunities for mobile ATMs. You can operate your ATM business seasonally or when these events are in town. Fairs and carnivals draw large crowds, and statistically, the more people who pass by your machine, the more transactions you’re likely to see. 

People also expect to spend money at fairs and carnivals. There’s food, drink, rides, games, vendors…. And one major convenience of cash for families is that it can easily be shared among members. When your kids want to do different things, just send them each off with a few bills to spend how they please. Would you be so giving of your card?

Flea Markets

Flea markets are good places to find a demand for cash because cash makes a good bargaining token. The price of most items at flea markets is negotiable, and the thought of an immediate cash payment is tempting to sellers. If a buyer can offer a cash payment, he or she can typically get a better deal. 

Craft/Art Shows

Vendors at craft and art shows don’t have the business resources to dedicate to payment processing equipment. Artists also make freelance-style, low income, so payment processing fees become an unfair burden. 

Marijuana Dispensaries

These opportunities are becoming harder to find because of the degree of necessity of cash at these locations. Because marijuana is still illegal at a federal level, marijuana dispensaries find it difficult to get payment processing companies (which are federal institutions) to work with them. Similarly, dispensaries are unable to operate their own ATM machines. 

This means that cash is the number one form of payment for marijuana dispensaries, and they are also top locations for independent ATM machines.

Christmas Tree Lots

A Christmas tree lot today, a fireworks stand tomorrow, these locations are great opportunities for mobile outdoor ATM machines. Due to the temporary, outdoor setting, electronic payment processing equipment can be an unnecessary hassle for these business owners. And, of course, Christmas Tree Lot Bob is in business for himself; he doesn’t want to pay credit card processing fees….

How to Find Cash-Only Businesses

Now you know what kinds of businesses are typically cash only, but how do you know which ones are near you without driving all over town?

Of course, you can check a business’s website to find out what forms of payment they accept. But this assumes that you already have an idea of a particular business or you’re just spending a ton of time online researching any business that comes to mind.

You can narrow your search by using online directories like Yelp and Yellow Pages and maybe even apply a “cash only” filter. Google Maps can provide you with business information, too, and can even go a step further by letting you know if there are already ATMs in the vicinity.

Other sources that can provide you with a business’s payment options include social media profiles and pages, personal experiences of family and friends, and review sites and forums like Reddit. But maybe the quickest, most efficient method is to simply conduct a web search: “cash-only businesses near me” or “cash-only businesses in (city) (zip code)”.

The most effective method is to call or visit a business in person. But again, for the sake of efficiency, you might do this in conjunction with another method above so that you only spend this time pursuing previously vetted leads.

How to Negotiate ATM Placement at Cash-Only Businesses

Negotiating ATM placement at cash-only businesses comes down to listing the benefits of cash payments. By placing an ATM at any small business, you encourage cash payments which minimizes credit card processing fees, pass the savings rather than the burden onto the customer, and avoid turning away cashless customers. 

Keep in mind, you don’t always have to look for strictly cash-only businesses for a good placement opportunity. You could find a small business that currently charges a fee for electronic payments. Or a small business that wants to move to cash only. All of these situations are good opportunities for ATM placement because of the demand for and benefits of cash. 

For more ATM machine placement and negotiation tips, check out ATMDepot.com’s Member’s Area where you can gain access to scripts and other helpful resources.

Easter Money: 9 Ways to Use Cash During Easter

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Easter money is an American necessity with the average household projected to spend $200 for a record collective high of $24 billion. Easter is coming up, and with it candy, food, gifts, clothing, and decorations. 

There are a variety of payment methods that can be used to purchase items in these top 5 categories of planned purchases. But cash definitely has its place at Easter time. 

Many kids and young people will be expecting goodies, gifts, and treats. Why? In this article, we will explore the history of this holiday, its traditions, and how you can benefit from using cash for Easter money this year.

The Origins of Easter Money

Easter is a Christian holiday that celebrates Jesus’s resurrection from the dead. However, many Easter traditions are not found in the Bible and likely have pagan origins. While historians only speculate about what Easter eggs, Easter baskets, and the Easter bunny represent, the theme of new life remains constant.

Easter Eggs, Easter Baskets, and the Easter Bunny

Easter, a Spring Equinox holiday, is a time to celebrate new life. Eostre was the Germanic goddess of fertility who blessed harvests. Carrying baskets of offerings to her ensured that harvests were successful. This is one potential explanation for the iconic Easter basket. 

Eostre’s animal symbol is a rabbit. This “Easter bunny” would be responsible for secretly bringing gifts and treats to children on the evening before Easter.

According to some sources, German immigrants to America brought with them the lore of “Osterhase” or “Oschter Haws,” an egg-laying hare. Children would construct nests (later to be replaced by decorated baskets) for the hare to lay its eggs. Rabbits are notoriously known to be prolific breeders—a sign of new life and fertility—which is another possible explanation for the rabbit as a symbol of Easter. 

Eggs can represent fertility, new life, and even Jesus’s emergence from the tomb. But some sources say that eggs were a forbidden food during the Lenten season. Decorating them was a way to mark the end of the fasting period. Then, they would be eaten in celebration.

Easter Coins and Easter Money

So, that explains the Easter basket, the Easter bunny, and Easter eggs. But what about Easter money?

You might remember opening eggs on Easter and finding coins inside, whether gold foil-wrapped chocolate coins or quarters and nickels. This tradition likely has its origin in 13th century England when royalty would give food, clothes, and coins to the poor on the Thursday before Easter Sunday. They would also wash the feet of the poor.

Feet washing, clothing, and food were replaced in the 18th century by a set allowance. Still known as Royal Maundy today, the tradition has evolved to include coins minted specifically for the occasion, known as Maundy Money. Recipients include elderly men and women chosen for the Christian service they have given to their Church and community.

Now, in the U.S., we fill our kids’ Easter eggs and baskets with chocolate coins, real coins, and even cash….  

Easter Money: 9 Ways to Use Cash During Easter

In short, Easter is a time for Christians to celebrate the resurrection of Christ and a time for everyone to get together for a special meal and other family traditions. Most families are projected to spend around $200 this year on Easter goodies. But there are some Easter traditions that just work better with cash.

1. Easter Eggs

Putting coins and small amounts of cash in Easter eggs is a nice alternative to sweets and candies. According to 90% of consumers, candy is the top planned Easter purchase this coming year. Why not replace some of that with physical money? Children are excited to comb through and play with shiny coins found in their eggs after their Easter egg hunts. It is also a great way to introduce currency to children at a young age.

2. Piggy Bank

Coins and cash for kids make fun additions to piggy banks. This can help teach kids about saving money. Then, plan with them what the money will be used for when it’s full!

3. Pez Dispensers

For older kids, cash inside of a pez dispenser could be a fun way to gift to the young ones in your life. Just fold it neatly, slide the dispenser up, and put the cash inside. What a nice surprise when they go to insert their candy!

4. Easter Baskets

You can also put cash gifts inside of children’s Easter baskets. There are many creative ways to even decorate baskets with cash and coins! As kids get older, Easter money could serve as a yearly allowance, a tradition for them to look forward to for years to come. College students can benefit from baskets with household supplies, food, treats, and even cash to help them with their expenses.

5. Easter Money-Holder or Card

Just as you might do for a birthday, you can always just give cash in a card rather than in eggs or baskets. This could be a nice addition to an Easter egg hunt for younger children or as an alternative for older kids. It’s also a good way to make sure everyone gets a fair amount instead of their Easter “payout” depending on the number of eggs they find.

6. Easter Bunny Money

Believe it or not, there is actual, official US currency with the Easter bunny on it. You can order $1 or $2 bills that are official, bankable, and spendable. Each USD bank note is a genuine authentic United States currency legal tender featuring a bunny portrait seal placed over the front of the bill covering the portrait of the president and creating an Easter Bunny Dollar Bill. 

You can also print your own, non-legal tender Easter bunny bills. This could be a good alternative as a toy for younger kids or to even help teach them about money and budgeting. Either way, Easter bunny money makes cute Easter egg, basket, or card fillers. 

7. Easter Money Origami

If you’d rather not spend extra money on Easter bunny money, you can make your own creative Easter bunnies by folding average bills into origami. You can make a full bunny or just a face and ears to add googly eyes to. Then put them inside eggs or toss them individually into a basket!

8. Easter Money Bouquet

If you are feeling really creative, you can make an Easter money bouquet for friends or loved ones. You can purchase them already made, or you can make your own! These can also make good donations for causes you’d like to support around the Easter holiday.

9. Church Collection

Last but not least, you can use cash at Easter time to offer a financial contribution to your local ministry. Easter is one of the most highly attended church days (along with Christmas Eve and Mother’s Day). 

According to Thom S. Rainer, this spike is likely due to high numbers of active and inactive patrons appearing at the same time on the same day. Those who do not attend church regularly will typically at least try to attend once a year at Easter. This is a good opportunity for local churches and other ministries to raise money through a collection, bake sale, or other donation-driven cause.

Allowing children to contribute cash to church collections and other donation areas helps teach them not only about the value of a dollar but also about charity, giving back, and sharing. 

Easter Money and Cash are King

We hope you noticed that each Easter money example above would not be the same if replaced by plastic. Cash is still very much a part of our history, our traditions, and our children’s lives. It is great for gifts, charity, and even teaching purposes. 

This Easter, try to get creative with cash! Can you think of other ideas not listed here? Since cash is so versatile, we’d be surprised if you couldn’t think of more ways to use cash for Easter money this year. Interested in making cash work for you? If you’d like to make passive income from owning your own ATM machine, check us out today!